Yearn Finance Will Soon Absorb SushiSwap – Marking Its Fifth Merger


As per the creator of Yearn Finance, Andre Cronje, the prominent decentralized finance (DeFi) protocol is gearing up to absorb yet another DeFi project – this time, the controversial automated market maker (AMM) SushiSwap.

Once the absorption finalizes, it will be the fifth time Yearn Finance gobbled up a DeFi project contemporary. The four other being Cover, Cream, Akropolis, and Pickle. That being said, this will mark the very first time that Yearn aimed to merge with a market that proves to be larger than its own. As per the latest DeFi Pulse data, SushiSwap’s total value locked is sitting at over $732 million, while Yearn’s falls behind at only $440 million. Without a doubt, this will be the project’s most significant merger yet, and Yearn so does treat it as much.

Just like the previous four integrations, Yearn and SushiSwap will share development resources on top of integrating each other’s liquidity pools in an effort to increase its overall total value locked. Cronje’s Yearn will aid in developing the xSushi vault that may readily farm Ether (ETH), YFI, SUSHI, and Wrapped BTC (wBTC). SushiSwap, on the other hand, will give Yearn permission to utilize its well-esteemed AMM to elevate its yield farming approaches.

It is also worth noting that SushiSwap’s forthcoming integration is set to be much deeper compared to those before it. For one, it will be the very first time that Yearn agreed to a mutual treasury allocations exchange. This means that for the very first time as well, the merger will be put up for public community vote – albeit on a limited and very specific capacity.

Notably, the merger of the two noteworthy DeFi protocols has no definite schedule yet.



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